Ch-3 Flashcards
Free Contract
The concept that people may decide what agreements they want to enter into
Profit Motive
The force that encourages people and organizations to improve their material well-being
Competition
The struggle among producers for the dollars of consumers; the rivalry among sellers
Public Disclosure Laws
Laws requiring companies to provide full information about their products
Gross Domestic Product
The total value of all final goods and services produced in a particular economy
Business Cycle
A period of macroeconomic expansion followed by a period of contraction
Work Ethic
A commitment to the value of work and purposeful activity
Technology
The process used to produce a good or service
Public Good
A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
Private Sector
The part of the economy that involves the transactions of individuals and businesses
Free Rider
Someone who would not choose to pay for certain good or service
Market Failure
A situation in which the market does not distribute resources efficiently
Poverty Threshold
An income level below which income is insufficient to support families or households
Welfare
Government aid to the poor
In-Kind Benefits
Goods and services provided for free or at greatly reduced prices
